The central bank remains cautious, even as calls for rate cuts grow louder from the White House and other policymakers.

The right to freedom of speech allows Trump to make demands of the Fed to his heart's content. But legally, he cannot compel the central bank to lower its benchmark interest rate. The Fed has the right to act independently, and its aim is to promote a healthy and stable economy by keeping inflation in check.

Kevin Warsh, the former Fed governor considered the most likely replacement for Jerome Powell to lead the Fed, on Monday night articulated his vision for policy. “Interest rates should be lower. The balance sheet should be smaller,